Q: My parents had me sign a promissory note which included not taking out a loan/mortgage, is this legal?
This promissory note was for the purpose of an amount of money I owe them, I incurred debt and they have taken over the debt with an agreement for me to pay them back. I signed it before reading it fully, as they chose to discuss and have me sign at the time I was supposed to be leaving for the airport. Upon reviewing after I got home, I saw the section including not taking out any loans or mortgages (I happened to be in the process of finding/purchasing a home). As I said, I signed it and a witness signed it, however it is not notarized and neither me or the witness read it due to time constraints to get to the airport. I am concerned about any action they could take should I take out a mortgage or any sort of loan.
Any help would be appreciated. Also I am located in Ohio, but signed the document in Florida at their home.
A: The not is not required to be notarized, and it is legal to require a debtor not to incur additional debt. Have an attorney review the note to advise you what you agreed to. If you breach the terms by getting a loan, then depending on what the note says, they could immediately demand full repayment, sue you, and initiate collection action against you. That might make it difficult for you to get a loan. The lawsuit also could lower your credit score. Use the Find a Lawyer tab and consult a local attorney.
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